2024

Resistance

<ul class="wp-block-list"> 
 <li><strong>Grant Colthup, former CEO faces a fraud charge for allegedly stealing $1.5M from a customer.</strong></li> 
 <li><strong>The court has adjourned the case to December 16, 2024.</strong></li> 
</ul> 
<p>Grant Colthup, the former CEO of Mine Digital, faces serious fraud charges for allegedly stealing $1.5 million from a customer. This transaction occurred just two months before the firm collapsed in September 2022. The Australian Securities and Investments Commission (ASIC) <a href="https://asic.gov.au/about-asic/news-centre/find-a-media-release/2024-releases/24-231mr-ex-ceo-of-crypto-exchange-mine-digital-charged-with-fraud/?altTemplate=betanewsroom" target="_blank" rel="noreferrer noopener nofollow">announced</a> the charges on October 21, detailing a transaction that took place in July 2022.</p> 
<div align="center">
 <blockquote class="twitter-tweet">
  <p lang="en" dir="ltr">Following an ASIC investigation, the ex-CEO of crypto exchange Mine Digital has been charged with fraud in connection with a $2.2 million transaction <a href="https://t.co/tHrFgaHiSD">https://t.co/tHrFgaHiSD</a></p>— ASIC Media (@asicmedia) <a href="https://twitter.com/asicmedia/status/1848510390486900809?ref_src=twsrc%5Etfw">October 21, 2024</a>
 </blockquote> 
 <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div> 
<p>The ASIC <a href="https://www.reuters.com/technology/australias-corporate-watchdog-charges-mine-digitals-ex-ceo-with-fraud-2024-10-22/" target="_blank" rel="noreferrer noopener nofollow">claims </a>that a customer paid A$2.2 million (approximately $1.47 million) to ACCE Australia, the Mine Digital entity, in exchange for Bitcoin. However, the customer never received the cryptocurrency. ASIC alleges that Colthup either used the funds to pay ACCE’s liabilities or purchased cryptocurrency for others.</p> 
<p>Furthermore, this case highlights ongoing concerns surrounding Mine Digital. Since its collapse, creditors have sought to recover approximately $16 million from the firm. An early investigation revealed that only A$20,000 in <a href="https://thenewscrypto.com/south-korea-virtual-assets-committee-set-to-review-crypto-etfs/" target="_blank" rel="noreferrer noopener">assets</a> were reportedly under ACCE’s control, far short of the claims made by creditors, raising significant concerns about the company’s financial practices.</p> 
<h3 class="wp-block-heading" id="h-court-proceedings-and-liquidator-s-findings">Court Proceedings and Liquidator’s Findings</h3> 
<p>In a court hearing on October 21, 2024, Colthup was informed of the fraud charge under section 408C of Queensland’s Criminal Code 1899. This section carries a maximum prison sentence of 20 years. The Magistrates Court in Ipswich has adjourned the case to December 16, 2024, allowing time for further proceedings.</p> 
<p>Additionally, the liquidator for ACCE Australia, Brad Tonks of PKF, was appointed shortly after the firm entered administration. Reports indicate that Tonks sought legal action against Colthup in January 2023, aiming to recover funds for the creditors left chasing $16 million.</p> 
<p>Tonks found that the company had not recorded client investments in <a href="https://thenewscrypto.com/bitcoin-slides-to-66k-after-bull-run-encounters-resistance-at-69k/" target="_blank" rel="noreferrer noopener">cryptocurrencies</a> on its balance sheet. He also discovered that, before the collapse, significant digital assets were likely transferred to accounts with limited records. This raises further concerns regarding the management of funds and the overall integrity of the exchange.<br><br><strong>Highlighted Crypto News Today<br></strong><a href="https://thenewscrypto.com/bitcoin-slides-to-66k-after-bull-run-encounters-resistance-at-69k/" target="_blank" rel="noreferrer noopener">Bitcoin Slides to $66K After Bull Run Encounters Resistance at $69K</a></p>

Ex-CEO of Mine Digital Charged with Fraud for Alleged $1.5M Theft

Table of Contents

TheNewsCrypto

Other articles published on Oct 22, 2024

Game on: Coinbase files two new FOIA requests against crypto regulators

Ripple’s Brad Garlinghouse Backs Co-Founder’s $10 Million Support for Kamala Harris: ‘Voters Care...

Analyst Unravels Mysterious Investor Shift from Gold to Bitcoin ETFs

Fantom's Bearish Phase Ends: $1 Target in Sight, Say Analysts

Bitcoin Surges Past $65,000 as 'Uptober' Gains Momentum

Core Scientific to host more CoreWeave infrastructure, targets $8.7B revenue

Join our free newsletter for daily crypto updates!